Federal

Federal Incentives

New Market Tax Credits

Overview

The New Markets Tax Credit Program (NMTC Program) was established by the United States Congress to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

The Technology Program Office of the U.S. Small Business Administration (SBA) administers the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program. Through these two competitive programs, SBA ensures that the nation’s small, high-tech, innovative businesses are a significant part of the federal governments research and development efforts. Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses.

The U.S. Citizenship and Immigration Services in the Department of Homeland Security administers the Immigrant Investor Program, also known as “EB-5.” Congress created the program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a pilot immigration program first enacted in 1992 and regularly reauthorized since, certain EB-5 visas also are set aside for investors in Regional Centers designated by USCIS based on proposals for promoting economic growth.

The City of Jurupa Valley provides a balance of life styles including both an equestrian and agriculture base to residents and consumers alike. Individual businesses involved in agriculture and farmers markets should investigate these opportunities.